Mortgage Tax Break: What If It Goes Away?
Thomas Hoenig of the Federal Reserve Bank of Kansas City made the suggestion during a speech that suggested interest rates need to rise before the housing market could fully recover. NAR economist Lawrence Yun later expressed concern that an elimination of the mortgage tax deduction, a cornerstone of American homeownership, would cause home prices to drop another 15 percent.
"Housing is critical to the economy," he said. "In my view, [losing the deduction] will surely put us in a broader economic recession."
For more insights on tax advantages see these AOL Real Estateguides:
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Get property tax help from our experts.